Brent Oil was trading 3.43% up at $73.70.
OPEC and its allies begin two days of meetings on Wednesday to decide whether to release more oil into the market or restrain supply amid big gyrations in crude prices and uncertainty about the impact of the Omicron coronavirus variant on energy demand.
Oil prices fell to near $70 a barrel on Tuesday, after hitting a three-year high above $86 in October, posting their biggest monthly decline in November since the start of the pandemic, as the new variant raised fears of a glut. [O/R]
In November, Brent fell by 16.4%, while U.S. crude fell 20.8%, the biggest monthly fall since March 2020. Both contracts rebounded sharply on Wednesday, gaining about 5%.
Iraqi oil minister Ihsan Abdul Jabbar said he expected the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to extend existing output policy in the short term, the state news agency reported.
OPEC+ ministers, including those from the group’s biggest producers Russia and Saudi Arabia, have said there was no need for a knee-jerk reaction to amend policy.
Since August, the group has been adding an additional 400,000 barrels per day of output to global supply, as it gradually winds down record cuts agreed in 2020, when demand cratered because of the pandemic.
Algerian energy minister Mohamed Arkab said on Tuesday that OPEC+ would supply the global market with enough oil but urged caution about the impact of the Omicron variant, Algerian state news agency APS reported.
Brent Oil , RSI Stood at 36.091, the current price is trading Below All the Moving Averages . So, a Sell trade can be executed with the following target and stop-loss:
TRADE SIGNAL-Brent Oil– Sell: 73.70, TARGET:-67.70, STOP LOSS:- 76.70.